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Released October 20, 2014 | PERTH, AUSTRALIA
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Researched by Industrial Info Resources Australia (Perth, Australia)--Global alumina prices have hit their highest levels since September 2011, and are showing no signs of stalling. The increasing demand for bauxite is predicted to intensify as alumina refiners in China, India and the Middle East ramp up production. At the same time, the market has seen major reductions in bauxite exports from India, and a ban on exports by Indonesia.
Chinese stockpiles are predicted to run out by the end of the year, which would force Chinese alumina refineries to rely on higher-priced imports to meet requirements through 2015 and beyond.
Australian producers are in an ideal position to supply the growing demand, with more than 115 million tonnes of high-quality bauxite, which is located near roads and ports on Australia's east coast.
Indonesia's ban on bauxite exports has made Australia the primary supplier to China. Australia now supplies 62% of China's bauxite imports. Rio Tinto plc (NYSE:RIO) (Melbourne, Australia) is Australia's key bauxite supplier.
The market has encouraged lower-end explorers to shift into production, with a host of new grassroots projects planned for the oncoming bauxite boom. As China seeks supplies from countries such as Guinea and Brazil, at prices up to $89 per tonne, Australia's $40 per tonne production costs are beginning to appeal to those who want to seize a piece of the action.
Upon governmental approval, Rio Tinto's South of Embley project would make the company the country's No. 1 bauxite producer throughout the coming decade, with an initial 15 million to 22 million tonnes of annual production capacity planned for completion in 2017, alongside a new bauxite export terminal. The first phase of the project has a total investment value of nearly $624 million, according to Industrial Info. An expansion, which is set for 2021, would increase the site's production capacity to 30 million tonnes per year, making it Australia's largest bauxite-producing plant to be brought online.
View Project Report - 86000970 300050244 300022517
The $230 million Bauxite Hills project by Cape Alumina Limited (ASX:CBX) (Brisbane) is planned a little earlier, with kickoff expected for next year. Similarly, an increase from 5 million tonnes to 10 million tonnes per year is planned for 2017, making Cape Alumina another major player in Australia.
View Project Report - 300050376 300050809
Another prospect is the collection of projects that are owned by Australian Bauxite Limited (ASX:ABX) (Sydney, Australia), which encompasses sites in New South Wales, Tasmania and Queensland. With a total investment value of nearly $17 million, the Launceston bauxite mine is set to begin at the end of the year, which could bring in enough money to allow the company to develop the $116 million Binjour bauxite mine in Queensland.
Once governmental approvals have been received to renew the transport system for bauxite in Queensland, the mine would become the second-biggest operational bauxite mine in Australia, behind Rio Tinto's South of Embley project. ABX aspires to become the third-largest single supplier of bauxite to China during the next six years.
View Project Report - 300106214 300104385 300110203
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Chinese stockpiles are predicted to run out by the end of the year, which would force Chinese alumina refineries to rely on higher-priced imports to meet requirements through 2015 and beyond.
Australian producers are in an ideal position to supply the growing demand, with more than 115 million tonnes of high-quality bauxite, which is located near roads and ports on Australia's east coast.
Indonesia's ban on bauxite exports has made Australia the primary supplier to China. Australia now supplies 62% of China's bauxite imports. Rio Tinto plc (NYSE:RIO) (Melbourne, Australia) is Australia's key bauxite supplier.
The market has encouraged lower-end explorers to shift into production, with a host of new grassroots projects planned for the oncoming bauxite boom. As China seeks supplies from countries such as Guinea and Brazil, at prices up to $89 per tonne, Australia's $40 per tonne production costs are beginning to appeal to those who want to seize a piece of the action.
Upon governmental approval, Rio Tinto's South of Embley project would make the company the country's No. 1 bauxite producer throughout the coming decade, with an initial 15 million to 22 million tonnes of annual production capacity planned for completion in 2017, alongside a new bauxite export terminal. The first phase of the project has a total investment value of nearly $624 million, according to Industrial Info. An expansion, which is set for 2021, would increase the site's production capacity to 30 million tonnes per year, making it Australia's largest bauxite-producing plant to be brought online.
View Project Report - 86000970 300050244 300022517
The $230 million Bauxite Hills project by Cape Alumina Limited (ASX:CBX) (Brisbane) is planned a little earlier, with kickoff expected for next year. Similarly, an increase from 5 million tonnes to 10 million tonnes per year is planned for 2017, making Cape Alumina another major player in Australia.
View Project Report - 300050376 300050809
Another prospect is the collection of projects that are owned by Australian Bauxite Limited (ASX:ABX) (Sydney, Australia), which encompasses sites in New South Wales, Tasmania and Queensland. With a total investment value of nearly $17 million, the Launceston bauxite mine is set to begin at the end of the year, which could bring in enough money to allow the company to develop the $116 million Binjour bauxite mine in Queensland.
Once governmental approvals have been received to renew the transport system for bauxite in Queensland, the mine would become the second-biggest operational bauxite mine in Australia, behind Rio Tinto's South of Embley project. ABX aspires to become the third-largest single supplier of bauxite to China during the next six years.
View Project Report - 300106214 300104385 300110203
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
